Executives See Sustainability as a Business Advantage, Investing in Technology to Strengthen Supply Chains, Manage Risk, and Fuel Growth and Resiliency

Eighty-seven percent of U.S. companies say they’ve maintained or increased their investment in business sustainability efforts this year, according to the 2025 U.S. Business Sustainability Landscape Outlook: Executive Perspectives on Supply Chain Disruption, Resilience and Competitiveness, released today by EcoVadis.

The findings reveal a shifting approach: companies are still prioritizing business sustainability behind the scenes, but fewer are promoting it publicly. Executives see sustainability as a way to stay competitive and resilient, especially at a time when the scaling back of ESG regulatory oversight raises concerns about greater supply chain disruption.

The report identifies five major trends shaping corporate sustainability strategy in 2025:

• Sustainability Investments Continue Despite a Rise in “Greenhushing”: Nearly one-third (31%) of executives say they are increasing business sustainability investments but reducing public communications. Eight percent have stopped talking about their commitments publicly but continue to invest and stay on-plan. Only 7% have actively cut back their sustainability efforts, and just 6% admit it is not a priority and do the minimum to comply.
  
  
  
  
• Executives See Sustainability as a Competitive Advantage: Sixty-five percent of all respondents say supply chain sustainability is a competitive advantage that helps them grow faster through risk reduction, resilience, brand enhancements, supply chain performance and cost savings. Sixty-two percent of directors and VPs and 59% of C-suite leaders say it helps attract and retain customers. A majority of finance leaders (52%) agree with this sentiment, saying sustainability is a growth driver.
  
  
  
  
• Rolling Back ESG Rules Could Backfire: Nearly half (47%) of C-suite respondents say eliminating ESG regulations would increase supply chain disruptions. Thirty-five percent of all executives say ESG regulatory rollback could backfire, weakening ESG data quality, undermining accountability, and negatively impacting sustainability outcomes. Another 59% expect unfair labor practices and worker mistreatment to rise.
  
  
  
  
• Companies Are Struggling to Keep Pace with ESG Compliance: Only 13% of companies are on track to comply with deadlines across four major regulations: the EU’s CSRD and CBAM, California’s SB-253, and Canada’s Modern Slavery Act. For each regulation, up to 19% of covered companies haven’t begun collecting supply chain ESG data, and up to 15% are in “wait and see” mode, hoping regulatory timelines shift.
  
  
  
  
• Tech Investments Accelerate as Companies Work to Close Data Gaps: A third of executives (33%) admit to knowingly reporting ESG data that was based on estimates, even if they knew it was not accurate, for compliance, marketing, or investor expectations. Still, the majority are working to close these gaps with technology: 57% are using ESG risk mapping tools, 49% have supplier ESG engagement platforms in place, 34% are using supply base mapping tools, and 32% are using on-site audit tools. And 89% of companies are planning further tech investments over the next 12 months.

“Even as the debate over business sustainability heats up, executives are focused on the reality – sustainability is what keeps supply chains running and customers on board,” said Pierre-François Thaler, co-founder and co-CEO of EcoVadis. “To stay ahead of risks and disruption, leading companies are prioritizing transparency and accountability by investing in tools that help them assess supplier performance, manage risk more proactively, and navigate evolving compliance demands.”

The 2025 U.S. Business Sustainability Landscape Outlook gathered insights from 400 U.S. executives at companies with over $1billion in revenue, across industries including consumer, industrial, technology and services. To learn how your organization can turn business sustainability strategy into a competitive edge, read the report here.

ABOUT ECOVADIS

EcoVadis is a purpose-driven company dedicated to embedding sustainability intelligence into every business decision worldwide. With global, trusted and actionable ratings, businesses of all sizes rely on EcoVadis’ detailed insights to comply with ESG regulations, reduce GHG emissions, and improve the sustainability performance of their business and value chain across 220 industries in 185 countries. Leaders like Johnson & Johnson, L’Oréal, Unilever, Bridgestone, BASF and JPMorgan are among 150,000+ businesses that use EcoVadis ratings, risk, and carbon management tools and e-learning platform to accelerate their journey toward resilience, sustainable growth and positive impact worldwide.

Learn more on: ecovadis.com, X or LinkedIn.

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